The Hindu Business Line : Marginal rise in MRPL Q1 net

Mangalore Refinery and Petrochemicals Ltd (MRPL) today reported a 10.11 per cent increase in turnover for the first quarter of the financial year 2006-07, while its net profit rose marginally.

The company's turnover stood at Rs 7,274 crore up from Rs 6,606 crore year-on-year.

Export sales went up by 68 per cent at Rs 2,797 crore from Rs 1,663 crore same period of last year. Refinery crude throughput for the quarter was 2.75 million tonne (MMT) compared to 2.94 MMT during the corresponding period the previous year. The reduction in throughput was due to the phase-II refinery units (six mmtpa) shutdown for annual turnaround.

Despite lower throughput, MRPL earned a net profit of Rs 215.91 crore (Rs 215.76 crore) after making provisions for financing and interest charges, depreciation and deferred tax/current tax liability, the company said. Sources told Business Line that the reason for not much improvement in net profit was high crude prices and lack of compensation available to standalone refineries similar to what was available to oil marketing companies.

As regards investments and growth plans, the board noted that implementation of the ISOM project for upgradation of facilities to produce motor spirit of Euro III/IV quality and mixed xylene project for producing value-added mixed xylene, were progressing on schedule and commissioning is expected in September.

MRPL and ONGC boards have approved the refinery's upgradation-cum-expansion project, which will enhance refining capacity to 15 mmtpa from the current capacity of 9.69 mmtpa and produce new value-added products. It is also expected to improve refining margins due to improved distillate yield in lieu of low value black oil pool. Engineers India Ltd was appointed as project management consultant on June 2. The process of selection of licensors for various units has started, the company said.

An aromatic complex is being set up to bring value addition to surplus naphtha by producing paraxylene (0.95 mmtpa), the board observed. The project is being implemented by a separate special purpose vehicle at an estimated project cost of Rs 4,852 crore, which will be located at the Mangalore SEZ.

Various initiatives taken in the area of direct marketing have started showing results, the board noted. Direct marketing sales has achieved almost 145 per cent growth during the quarter at Rs 521 crore against Rs 212 crore in the previous corresponding period.